2-Hour Analysis:
Big Picture: Bitcoin has been trading in an unusually choppy and narrow range for the last three days. The price range has generally been in the 450$ bracket, ranging from 30,000 to 30,450. This has resulted in extreme dryness for the volumes, indicating that participants stayed sidelined over the weekend. The volatility index has hit support levels and is expected to improve the trading environment in the coming hours and sessions, either by breaking out of the range or giving better swings within it.
On the Upside the resistance levels remain unchanged. The session’s early resistances are at the 30,250 level, followed by the 20,450 level. Furthermore, the EMA-100 is located between these levels, posing further challenges. Surpassing these resistances would increase Bitcoin’s upside potential, with a re-test of the resistance zone above at 31,200 to 31,450 levels on the horizon.
On the Downside the strong supporting zone between 30,000 and 29,800 levels has been maintaining the price steadily for several weeks. The 2-hourly EMA-200 level is now boosting this supportive zone. The region combines with multiple supports makes it challenging for sellers. For sellers to test lower supports, a breach of this zone is still required. If successful, this would allow for a deeper pullback in the 29,200 to 28,800 range.
